Wine Law

THE PROMOTION OF WINE AND TAXATION 453 legal protection processes, compliance with reasonable measures that solve legitimate problems, such as public health, without entailing impediments to economic development” (Bernal, 2018). In the specific case, the wine industry’s growth in Peru has been disadvantaged and its development hindered, given that, between a specific situation promoting the growth of the wine industry and an abstract one defending the “general health” of the society that has better and greater protection mechanisms, the former should be chosen. Moreover, in a recent investigation on Supreme Decree No. 092-2013-EF concerning the ISC, Ríos expressed that: “The only thing that this actually achieves is, on the one hand, to increase the collection of the tax, and, on the other hand, that the de jure taxpayer transfers the tax to the final consumer through the sale price” (Ríos, 2019). Conversely, it is a discriminatory tax, since, by opting for the one in which the collection is higher in favour of the State, to a certain extent, it reduces the opportunity for the producer to be favoured. It brings, of course, laws of development and promotion of wine are forgotten and the diversion of the ISC’s function as an extra-fiscal tax, which is corroborated by Ríos, in the sense that “selective taxation is distorted in terms of the theoretical foundations that sustain it, in other words, the tax is not fulfiling its extra-fiscal purpose (to discourage the consumption of the goods subject to the tax)”, concluding that the application of the ISC in terms of the theoretical benefits to society are not being fulfiled in the country (Ríos, 2019). In this regard, there were two more attempts by Congress members representing the Ica Region to change this unfavourable situation for the wine industry. This is how Bill No. 5286/2015-CR by José Luis Elías Avalos (5 May 2016) and Bill No. 2501/2017-CR by Miguel Ángel Elías Avalos (6 March 2018) were proposed and presented at the party table; both advocated that for the ISC’s purposes taxed on the goods contained in several tariff items 3 of Appendix IV of the General Sales Tax and Selective Consumption Tax Law, only the Specific System shall be applied, which must be included in subparagraph B. Both projects were very similar, and they simplified it in the following table: 3 I.e. 2204.10.00.00, 2204.21.00.00 and 2204.29.90.00.